July
29

Microsoft goes on permanent diet as result of sales slump – may relocate customer support to countries with cheaper labor

Posted By: Wayne Schulz    



SteveBallmerSweating.jpg

As a result of Microsoft’s latest 29% earnings decline (Microsoft Profit Falls 29% as Software Demand Wanes) which was reported July 23, 2009 the company’s Chief Financial Officer Chris Liddel has stated that frugality will be a new way of life.

Speaking to Bloomberg in an article dated July 29, 2009 the company’s finance chief further stated that “this is a new diet regime where you slim down and stay down” adding “this is not a crash diet where you stop eating for a couple of quarters”.

Microsoft is coming off their first ever revenue decrease since the company went public. Revenue fell 17% last quarter and missed the average estimate of analysts in a Bloomberg survey by more than $1 billion.

As part of the cost cutting the article stated that Microsoft may relocate some customer support to countries with cheaper labor. There was no indicate what impact, if any, these cost cutting measures would have on Microsoft research and development efforts.

Bloomberg via ERP Users

© 2009, Wayne Schulz. All rights reserved. Sage 50, Sage 100, Sage 300 and Sage 500 are registered trademarks of Sage. Have additional unanswered questions about MAS90? You may contact Schulz Consulting here.

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About

This entry was written by a Sr Consultant who has worked with Sage 100 ERP ( Formerly Sage MAS 90 and MAS 200) since 1986. He provides technical support to companies located throughout the United States on all versions of Sage 100 ERP Contact Wayne via our info request page.The views expressed on this site are solely those of the author and do not reflect the opinion or position of any other person or company. We are NOT in the business of providing tax, accounting or audit advice and you are advised to consult with your tax professional in such matters and not to rely on any information here as authoritative tax, technology or accounting advice. Information is subject to change without notice. Google+

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